Allowed

Canara Bank v. Veerendra .M.

DRT22 Sept 2025OA/1090/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application seeking a Recovery Certificate against a defendant for a defaulted cash credit. The defendant appeared ex parte, leaving the applicant's evidence unrebutted. The Tribunal granted recovery with reduced interest.

What did the court decide?

Recovery Certificate ordered to allow recovery of Rs. 21,31,936/- plus interest at 10% p.a. (simple) from the defendant and his assets.

Canara Bank versus Veerendra .M. — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 22^nd Day of September, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1090/2024

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BETWEEN:

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Canara Bank, And having a branch, Algerimandri Branch, Nagaveni Complex, Haridravathi Post, Alagerimandri, Hosanagara Taluk, Shivamogga District- 577412, Represented by its Manager, And constituted Attorney, Sri. Kumaraswamy B, S/o Sri. Bheemanna, Aged about 39 years. …APPLICANT

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AND:

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Sri. Veerendra. M, S/o Maribasappa Gowda, Aged about 51 years, Gudugudu Village, Iruvakki, Sagara Taluk, Shimoga District- 577416.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Veeresh Kumar Javali M.C. Defendant : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 21,31,936/- (Rupees

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Twenty One Lakh Thirty One Thousand Nine Hundred and Thirty Six Only)

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OA 1090/2024

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with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant availed cash credit facility of Rs. 1,00,000/- (Rupees One Lakh Only) for the purpose of working capital requirement of ginger and Areca Stocks, enhanced to Rs. 3,50,000/- (Rupees Three lakh Fifty Thousand Only) further enhanced to Rs. 10,00,000/- (Rupees Ten lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with letter of undertaking, pronote and particulars of hypothecated livestock.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 17.02.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced

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OA 1090/2024

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Exhibits A-1 to A-31 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim

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as against the defendant?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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OA 1090/2024

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Taking into consideration the facts that the credit facilities are

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availed for Commercial purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.1090/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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21,31,936/- (Rupees Twenty One Lakh Thirty One Thousand Nine Hundred and Thirty Six Only) with further interest @10.00 % p.a.(simple)

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from the date of filing OA till the realization, from the defendant personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the defendant personally and also proceeding against his assets including hypothecated movables. Schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings which

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applicant to file cost memo within 7 days from the date of receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, are disposed of with this Final Order.

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OA 1090/2024

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14. Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 22^nd Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Nilesh Nalge S/o. Sri. Balasaheb, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	06.10.2015	Loan application
A2	06.10.2015	Sanction memorandum
A3	06.10.2015	Request for overdraft facilities
A4	06.10.2015	Account opening form for savings bank
A5	06.10.2015	Cash credit agreement dated executed by the defendant
A6	06.10.2015	Pronote
A7	06.10.2015	Letter of undertaking re:loans
A8	06.10.2015	Particulars of hypothecated livestock
A9	14.07.2016	Application form for loans to Micro and small enterprises
A10	14.07.2016	Sanction memorandum
A11	14.07.2016	Request for over draft facilities
A12	14.07.2016	Request for overdraft facilities
A13	14.07.2016	Supplemental agreement
A14	14.07.2016	Letter of renewal
A15	14.07.2016	Link letter in respect of enhances credit facilities
A16	14.07.2016	Pronote

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OA 1090/2024

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A17	14.07.2016	Particulars of hypothecated livestock etc
A18	14.07.2016	Letter of proprietorship
A19	14.07.2016	Letter of undertaking re:loans
A20	14.07.2016	Letter of revival
A21	08.02.2018	Loan application
A22	08.02.2018	Sanction memorandum
A23	08.02.2018	Supplemental agreement
A24	08.02.2018	Letter of renewal
A25	08.02.2018	Link letter
A26	08.02.2018	Pronote
A27	13.05.2019	Letter of revival
A28	18.10.2019	Demand notice
A29	--	Postal acknowledgment
A30	08.05.2022	Letter of revival
A31	--	Statement of accounts

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Veerendra .M.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Veerendra .M.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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